Special preferences in tax law

Another advantage to a fair tax would be the efficiency in which the IRS could collect taxes. “Every year, Congress adds, extends and changes the deductions, credits and other special preferences in our tax law. Because of these loopholes, compliance is a nightmare and the overall complexity is mind numbing. Worse, the final result is often unfair: Taxpayers with similar incomes can game the system and pay vastly different amounts in taxes. ” The U. S Department of the Treasury estimates that as much as $125 billion and perhaps as high as $190 billion is wasted in the attempt to comply with the current tax code.

What an unbelievable waste of money; money which many economists believe would be saved if the United States adopted a flat rate tax. The U. S Tax code is now more than 60,000 pages long and every year; hundreds of additional provisions are added, in the erroneous belief that Americans have already mastered the previous year’s tax code. This is not the case and when President Carter, in 1976, commenting on the tax code then, said: “Our income tax system is a disgrace to the human race,” He would be hard pressed to comment on our current tax code.

What many has regarded as a problem, has only gotten worse. A flat rate tax would help to alleviate the problem. The benefits of a flat rate tax are closely aligned to the benefits of Americans who pay fewer taxes. There exists in American politics today, a great difference of ideas regarding the taxation of the American people. When President Bush imitated the tax cuts at the beginning of his presidency, there were many who regarded it as simply rewarding the rich who helped to elect President Bush in the first place through their donations and votes.

However, the motivation behind that was two fold: giving back the economic power to the individual helped to spurn economic growth. The White House believed that the individual has more of a right to the money that they earn, and then does the government. As a result, larger refunds at tax time, resulted in more spending; more money goes back into the economy as the vast majority of Americans who now, instead of receiving a $2000 refund, receive a $3000 or $4000 refund, will gladly and anxiously spend that extra $2000. This might not be the best use of the money for the individual and his family.

However, without the tax cuts, he would not even have that option as neither would the economy as well who now would be expected to continue its business as usually, without the benefit of billions of dollars being pumped into the local and state economies which was the reality under the President’s tax cuts. There are many in America who believes that is what needs to be enacted in America. Unfettered welfare, which existed from 1965 until 1994 and which still has its effects in America today, costs a great deal of money. That money comes from the government’s ability to collect taxes.

Hamper that ability and the government will have to find a way to achieve the same results with less. Many believe that is a good thing and another reason why a flat tax should be enacted. A flat tax would force the government to stop its wasteful spending. Countless billions of dollars are spent in needless “earmarks” or pet projects that are not useful. $10 million for an airport in Alaska or $3 million for an airport in Iowa in which, on an average day, less than ten planes took off and landed compels one to wonder why the taxpayer’s money is being spent that way.

The members of Congress, most of which support at least one or two earmarks, purposely bury them in their budget proposals. When asked by the media, most famously, CNN’s Anderson Cooper, dozens of attempts to reach any of the members of Congress for a comment, is either met with mute contempt or a generic letter which attempts to defend spending foolishly spending millions of dollars on unimportant projects. In that respect, the fair tax would remind the members of Congress that they work for us and that non stop pay raises would then cease.

The economy is doing well but it could do better. The nation is trillions of dollars in debt and there is no sign of the balance being paid off any time soon. The American government likes the people that it represents, are not known to be fiscally responsible. Six in ten adults are in credit card debt, due to undisciplined spending habits, an unfortunate occurrence in their personal life or from an increase in the amount of their own hard earned money that they are compelled to under law, to give to the government.